23 CAR pt. 105, Appendix B. Notice of the Arkansas Life and Health Insurance Guaranty Association Act

Appendix "B" NOTICE OF THE ARKANSAS LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT the Arkansas Life and Health Insurance Guaranty Association Act (the “Act”) provides protection, subject to certain limitations and exclusions, against loss under life and health insurance policies and annuity contracts issued by insolvent insurers licensed in this state. This notice is provided to you only to make you aware of the existence of the limited protection under the Act. It confers no rights to any policyholder or contract holder not provided under the Act. It does not change or vary any exclusion or limitation contained in the Act. Specific reference must be made to the Act to determine whether any particular policy or contract is covered, the amount of any coverage which may be available, and applicable limitations or exclusions. Some of the limitations and exclusions are as follows: 1. The Act limits the amount the Guaranty Association is obligated to pay. The Guaranty Association cannot pay more than what the insurance company would owe under a policy, contract, or certificate. Also, for any one insured life, the Guaranty Association will pay a maximum of $300,000 in life insurance death benefits without regard to the number of policies and contracts there were with the same company, even if they provided different types of coverages. The Guaranty Association will pay a maximum of $500,000 in health benefits, provided that coverage for disability insurance benefits and long-term care insurance benefits shall not exceed $300,000. The Guaranty Association will pay $300,000 in present value of annuity benefits, including net cash surrender and net cash withdrawal values. There is a $1,000,000 limit with respect to any contract holder for unallocated annuity benefits. These are limitations under which the Guaranty Association is obligated to operate prior to considering either its subrogation and assignment rights or the extent to which those benefits could be provided from assets of the impaired or insolvent insurer. 2. You are not covered: a. If you are not a resident of Arkansas at the time the order of the insurer’s insolvency was issued; b. Your insurer was not licensed in this state; or, c. Your insurer was a self-insured plan, trust or other similar entity or organization excluded under the Act. 3. Obligations not specifically provided in the policy or contract are not covered by the Act. Examples of obligations, which are not covered by the Act, include damages or loss due to misrepresentations of policy benefits, inaccurate solicitation material, unfiled policy documents or endorsements, and extra-contractual damages, penalties and similar damages or claims. 4. Dividends or interest rate yields that do not meet specifications described in the Act are not covered under the Act. You should not rely upon coverage under the Act when buying a life or health insurance policy, annuity contract, or when selecting an insurer. Neither agents nor insurers should use the existence of the Guaranty Association to induce you to purchase a product from them. For more information relative to the Act, you may contact: The Arkansas Life and Health Arkansas Insurance Department Insurance Guaranty Association 1 Commerce Way, Suite 102 c/o The Liquidation Division Little Rock, AR 72202 1023 West Capitol, Suite 2 Little Rock, AR 72201